Train Will Lose Millions; Rail Runner Fares
May Cover 10 Percent of Cost

By Jeff Jones

Journal Politics Writer

SANTA FE— The first year of fare revenues from Gov. Bill Richardson's Rail Runner Express commuter train probably will amount to only 10 percent of the service's estimated $10 million annual operating cost, planners told lawmakers Monday.

"I can assure you we will not meet our costs. I do not know of a single (train) system in the world that makes money," State Transportation Secretary Rhonda Faught told the Senate Corporations and Transportation Committee.

It's a point New Mexico's train planners have made repeatedly: Fares don't cover the costs of commuter trains.

The first three years of operating costs for the train to link Belen, Albuquerque, Bernalillo and some points in between are being paid by federal funds, planners have said. Taxpayers from special transit districts along the line could be asked for a tax increase to help cover the operations costs after that.

The state transportation chief and Cabinet secretary acknowledged that another option might be to ask for state appropriations to keep the Rail Runner chugging.

"We believe that once the service is up and running for three years, people will want it to continue," Faught said. If a tax isn't requested or approved, she said, "We are working on a fall-back plan."

The Rail Runner will likely average $2 to $4 for a one-way trip and $5 for a day pass, Faught said. She added it will probably offer a free month of service when it begins rolling, which is expected this spring.

Planners expect 300,000 riders for the first full year of service, bringing in an estimated $900,000 to $1.2 million. The train's operating costs are pegged at approximately $10 million per year.

Some lawmakers have criticized train planners for not providing enough specifics on the Rail Runner while spending $318 million in state transportation money to get it operational.

Some committee members said Faught's update Monday was the first time they've heard such details.

"This is the first I've heard about the operations side," said Sen. Mark Boitano, R-Albuquerque. He thinks the estimated cost of operating the service could rise.

Faught said the results of a train fare analysis came last week.

Richardson in 2003 announced plans to begin a commuter train and said he intended to put the project on a fast track.

Sleek locomotives and passenger cars with an eye-catching roadrunner logo have been bought and delivered, the state is in the midst of a $75 million purchase of rail line from the BNSF Railway, and train planners hope to roll the service into Santa Fe by the end of 2008.

The $318 million for Rail Runner construction costs is coming from a $1.6 billion transportation package approved by the Legislature in 2003.

Planners expect to pay the entire construction tab— now pegged at $393 million— by using an additional $75 million in anticipated federal aid.

Some lawmakers have said they weren't fully apprised on how much state transportation money planners intended to use for the Rail Runner, but Faught on Monday again insisted she's been upfront about the train costs.

She again vowed the train won't take away from any of a long list of state road projects included in the $1.6 billion transportation package.

Boitano said that, while planners insist the project has the public's support, he hasn't heard any from his constituents.

"I haven't had one person— not one— who's told me this is a great idea," he said. "It appears the statements of support are coming from Santa Fe, and not the neighborhoods."

Sen. Diane Snyder, R-Albuquerque, had a different impression.

She said that from what she's heard, "everybody likes the railroad."

Sen. Phil Griego, D-San Jose, a train backer, said it has widespread Democratic support.

"Whether we admit it or not, we all understand there is no mode of transportation in this country that is making a profit," Griego said.

Before the first locomotive can head down the tracks, planners are waiting for a state attorney general's opinion concerning the legality of liability agreements in the state's contract with BNSF Railway. Faught said she's hoping that opinion will be done by month's end.

Initial train service will run from Bernalillo to Albuquerque, with service to and from Belen and Los Lunas coming later in the year.